The present invention relates to systems and methods for the acquisition and magnetic encoding of data on credit, debit, and account access cards used in conjunction with automated teller machines (ATM) and point of sale (POS) machines. More specifically, the present invention involves the use of an interactive voice response system to automate the selection of personal identification numbers (PIN) and encoding of PIN offsets which are necessary features of conventional ATM cards and networks. As a matter of convenience, references herein to ATM cards will also include POS, credit, and debit cards.
Localized and interconnected ATM networks have become a prominent feature of the consumer banking industry. Similarly, point of sale (POS) machines for authorization of debit and credit card transactions are increasingly found in retail establishments. In either case, the ATM and POS machine industries have adopted uniform standards for identifying the user and user account number by encoding alphanumeric data on a magnetic "stripe" placed on the ATM card itself. Encoding can also be accomplished by use of memory chips, as with a "smart" or "chip" card, or optically for use with optically read cards. Access to the ATM machine and user account is controlled by use of a PIN that, in conjunction with the account number, is unique and confidential to the user.
Typically, the PIN is a combination of four numerals that are either selected by the user at the time the account is opened or are algorithmically generated by the independent ATM card issuer. Those familiar with the ATM industry realize that many users prefer to select their own PIN in order to improve their ability to remember it for future use.
Generally, there are three basic methods used today for PIN selection and encoding. In one, the new ATM card user is asked to "confidentially" write down, or instruct the bank customer service representative to write down, the desired PIN, which is then delivered to an in-house or independent ATM card encoding and embossing facility. This method creates an undesirable hard copy of the PIN selection and increases the number of personnel having access to the PIN. These two factors increase the risk of unauthorized card/PIN use. In the second method, the customer is asked to use an ATM itself to select and transmit the desired PIN to the bank's data processing facility. This can be awkward and inconvenient if, for example, the customer is unfamiliar with ATM operation, if an outside ATM machine, the weather is poor, or if the ATM is not on-line.
In the third known method, the bank itself will provide the customer with direct access to an on-site card encoding/PIN selection system. This is not preferred because of the large capital investment and training required by the bank in providing such systems for each of its locations.
What is needed, then, is a convenient and low cost system and method whereby a bank can provide its ATM customers with direct yet remote, interactive, and confidential access to an ATM card encoding/embossing facility, such that the customer may select a preferred PIN and cause the automatic encoding of a PIN offset without the creation of unnecessary documentation and involvement of additional personnel or equipment.